Three companies could raise net proceeds of up to HK$668 million from initial public offerings in Hong Kong in the first two weeks of the new year.
Newtree Group Holdings, a supplier of plastic disposable goods, said it expects net proceeds to reach about HK$298 million, making it potentially the largest IPO among all three companies.
The company manufactures waste bags, disposable gloves and aprons for both clinics and general households. Most of its products are manufactured in Huizhou in Guangdong province, and exported to the United States and Europe.
Newtree will place 90 per cent of newly issued shares globally, and 10 per cent for public offering in Hong Kong. The global placing has been oversubscribed by two to three times already, said Donny Wong of Guotai Junan International, the book runner for Newtree.
Desmond Chum Hon Sing, the chief executive of Newtree and son of the company's founder and chairman Chum Tung Hang, said the company would continue to focus on the US and European markets, but the company was also considering expanding into the mainland.
'As China's health care takes off, we believe there is enormous potential in the medical consumables market,' said Chum.
Newtree plans to use about 50 per cent of the proceeds to build a new production facility on the mainland. It will also spend about 8 per cent to upgrade its Huizhou factory.
